1606 Corp. Announces LOI with EthosEnergy for 55 MW Lufkin O&M

What Happened 1606 Corp. (ticker: CBDW) announced on September 8, 2026 that it executed a Letter of Intent (LOI) with EthosEnergy Power Operations (West), LLC to pursue operations and maintenance (O&M) of the Company’s approximately 55 MW power facility on its East Texas (Lufkin) campus. The press release states EthosEnergy was the previously undisclosed power‑generation services provider engaged to support planned operation and recommissioning of the Lufkin facility. The LOI is generally non‑binding and does not obligate either party to enter into a definitive O&M Agreement (OMA). The company said it intends to exclusively negotiate with EthosEnergy toward a definitive OMA upon successful completion of its proposed acquisition of the Lufkin project under the existing purchase and sale agreement, as amended.

Key Details

• Date filed: September 8, 2026 (Form 8-K, Item 7.01; press release furnished as Exhibit 99.1).
• Facility size: ~55 MW power facility located at the Lufkin, East Texas campus.
• Agreement status: LOI is generally non‑binding; exclusive negotiations toward a definitive OMA are planned only if the Company completes its proposed acquisition of the Lufkin project.
• Disclosure note: Press release includes forward‑looking statements and cautions that the Private Securities Litigation Reform Act safe harbor is not available because the company’s common stock is considered a “penny stock.”

Why It Matters This disclosure signals progress toward operationalizing the Lufkin power project by identifying a potential O&M partner (EthosEnergy) and setting the path for exclusive negotiations if the acquisition closes. For investors, the item is a step in the company’s effort to recommission and operate the 55 MW facility, but the LOI’s non‑binding nature and the pending acquisition mean material outcomes (revenues, operating cash flow, definitive contracts) remain uncertain until definitive agreements and the acquisition are completed.